Vinh Phuc resolute on refusing TAL Group's $350 million project

In order to show its determination to say no to projects that could damage the environment, the Vinh Phuc People’s Committee submitted the fourth document asking the prime minister to refuse Hong Kong-backed TAL Group’s $350 million textile and garment dyeing project.

Ba Thien 2, where TAL Group wants to develop $350 million textile and garment dyeing project

Notably, according to the document submitted to the prime minister, on April 21 the province organised a conference to collect opinions from representatives of departments, relevant authorities, and experts about TAL Group’s textile and garment dyeing project.

At the conference, TAL Group had 40 minutes to present the project, especially information about the environmental treatment technology, machinery, as well as the manufacturing lines to be used.

As a result, after listening to the investor’s presentation, almost all of the representatives agreed that the project does not suit the development plan of the garment and textiles industry of Vietnam to 2020, with vision to 2030 approved by the Ministry of Industry and Trade. Besides, the project does not match the province’s development planning either.

“TAL Group’s existing garment factory operates smoothly, without causing environmental pollution, however, the new project has a dyeing facility which is not suitable with the investment planning of the province, thus the province wants to refuse it,” Nguyen Cong Thang, director of the Vinh Phuc Industrial Zones Management Board's Investment Management Department told VIR.

Besides, according to experts, the investor adjusted the textile and garment dyeing project’s investment plan three times, however, based on the information provided as well as the illustration images of the plant presented at the conference, almost all technology and manufacturing lines are outdated and pose a high risk of environmental pollution.

TAL Group’s existing garment factory operates smoothly, without causing environmental pollution, however, the new project has a dyeing facility which is not suitable with the investment planning of the province, thus the province wants to refuse it.

Thereby, the province proposed the investor to look for other investment sites in other provinces for the project.

The company entered Vietnam in 2004 with the $40 million Viet My Garment Textile and Garment plant in Thai Binh province’s Phuc Khanh Industrial Zone.

TAL Group manufactures products for large-scale global retailers in the US, Europe, and Asia, including famous brands like Burberry, Brooks Brothers, Banana Republic, and Tommy Hilfiger.

In October 2016, TAL Group took its second, $50 million garment factory into operation in Vinh Phuc province.

After that it expressed interest in developing a textile and garment dyeing project in Ba Thien 2 Industrial Park with the aim of creating a closed manufacturing chain.

However, after studying the scale as well as the demand for electricity, water, and chemicals for the project, Vinh Phuc was afraid that it may discharge large volumes of wastewater that would affect highly populated areas, having potentially adverse effects on agricultural production, aquaculture, and daily life. Thus, the province submitted three documents to the government, urging it to refuse the project.